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The New Deal

New Deal Legislation

The National Industrial Recovery Act

June 16, 1933

TITLE I -- INDUSTRIAL RECOVERY

[A] Declaration of Police

Sec. 1. A national emergency productive of widespread unemployment and disorganization
of industry, which burdens interstate and foreign commerce, affects the public welfare,
and undermines the standards of living of the American people, is hereby declared
to exist. It is hereby declared to be the policy of Congress to remove obstructions
to the free flow of interstate and foreign commerce which tend to diminish the amount
thereof; and to provide for the general welfare by promoting the organization of industry
for the purpose of cooperative action among trade groups, to induce and maintain united
action of labor and management under adequate governmental sanctions and supervision,
to eliminate unfair competitive practices, to promote the fullest possible utilization
of the present productive capacity of industries, to avoid undue restriction of production
(except as may be temporarily required), to increase the consumption of industrial
and agricultural products by increasing purchasing power, to reduce and relieve unemployment,
to improve standards of labor, and otherwise to rehabilitate industry and to conserve
natural resources.

[B] Administrative Agencies

Sec. 2. This title shall cease to be in effect and any agencies established here
under shall cease to exist at the expiration of two years after the date of enactment
of this Act, or sooner if the President shall by proclamation or the Congress shall
by joint resolution declare that the emergency recognized by section 1 has ended.

[C] Codes of Fair Competition

Sec. 3. (a) Upon the application to the President by one or more trade or industrial
associations or groups, the President may approve a code or codes of fair competition
for the trade or industry or subdivision thereof, represented by the applicant or
applicants, if the President finds (1) that such associations or groups impose no
inequitable restrictions on admission to membership therein and are truly representative
of such trades or industries or subdivisions thereof and (2) that such code or codes
are not designed to promote monopolies or to eliminate or oppress small enterprises
and will not operate to discriminate against them, and will tend to effectuate the
policy of this title: Provided, That such code or codes shall not permit monopolies or monopolistic practices: Provided further, That where such code or codes affect the services and welfare of persons engaged
in other steps of the economic process, nothing in this section shall deprive such
persons of the right to be heard prior to approval by the President of such code or
codes. The President may, as a condition of his approval of any such code, impose
such conditions (including requirements for the making of reports and the keeping
of accounts) for the protection of consumers, competitors, employees, and others,
and in furtherance of the public interest and may provide such exceptions to and exemptions
from the provisions of such code, as the President in his discretion deems necessary
to effectuate the policy herein declared.

(b) After the President shall have approved any such code, the provisions of such
code shall be the standards of fair competition for such trade or industry or subdivision
thereof. Any violation of such standards in any transaction in or affecting interstate
or foreign commerce shall be deemed an unfair method of competition in commerce within
the meaning of the Federal Trade Commission Act, as amended; but nothing in this title
shall be construed to impair the powers of the Federal Trade Commission under such
Act, as amended.

……

(d) Upon his own motion, or if complaint is made to the President that abuses inimical
to the public interest and contrary to the policy herein declared are prevalent in
any trade or industry or subdivision thereof, and if no code of fair competition therefore
has theretofore been approved by the President, the President, after such public notice
and hearing as he shall specify, may prescribe and approve a code of fair competition
for such trade or industry or subdivision thereof, which shall have the same effect
as a code of fair competition approved by the President under subsection (a) of this
section

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[D] Agreements and Licenses

Sec. 4. (a) The President is authorized to enter into agreements with, and to approve
voluntary agreements between and among, persons engaged in a trade or industry, labor
organizations, and trade or industrial organizations, associations, or groups, relating
to any trade or industry, if in his judgment such agreements will aid in effectuating
the policy of this title with respect to transactions in or affecting interstate or
foreign commerce, and will be consistent with the requirements of clause (2) of subsection
(a) of section 3 for a code of fair competition.

(b) Whenever the President shall find that destructive wage or price cutting or other
activities contrary to the policy of this title are being practiced in any trade or
industry or any subdivision thereof, and, after such public notice and hearing as
he shall specify shall find it essential to license business enterprises in order
to make effective a code of fair competition or an agreement under this title or otherwise
to effectuate the policy of this title, and shall publicly so announce, no person
shall, after a date fixed in such an announcement, engage in or carry on any business,
in or affecting interstate or foreign commerce, specified in such announcement unless
he shall have first obtained a license issued pursuant to such regulations as the
President shall prescribe. The President may suspend or revoke any such license,
after due notice and opportunity for hearing for violations of the terms or conditions
thereof. Any order of the President suspending or revoking any such license shall
be final in accordance with law.

……

Sec. 5. While this title is in effect, and for sixty days thereafter, any code, agreement,
or license approved, prescribed, or issued and in effect under this title, and an
action complying with the provisions thereof taken during such period, shall be exempt
from the provisions of the antitrust laws of the United States.

Nothing in this Act, and no regulation there under, shall prevent an individual from
pursuing the vocation of manual labor and selling or trading the products thereof;
nor shall anything in this Act, or regulation there under, prevent anyone from marketing
or trading the produce of his farm.

[E] Limitations Upon Application of Title

Sec. 6. (a) No trade or industrial association or group shall be eligible to receive
the benefit of the provisions of this title until it files with the President a statement
containing such information relating to the activities of the association or group
as the President shall by regulation prescribe.

……

Sec. 7. (a) Every code of fair competition,agreement, and license approved, prescribed
or issued under this title shall contain the following conditions: (1) That employees
shall have the right to organize and bargain collectively through representatives
of their own choosing, and shall be free from the interference, restraint, or coercion
of employers of labor, or their agents, in the designation of such representatives
or in self-organization or in other concerted activities for the purpose of collective
bargaining or other mutual aid or protection; (2) that no employee and no one seeking
employment shall be required as a condition of employment to join any company union
or to refrain from joining, organizing, or assisting a labor organization of his own
choosing; and (3) that employers shall comply with the maximum hours of labor, minimum
rates of pay, and other conditions of employment, approved or prescribed by the President.

(b) The President shall, so far as practicable, afford every opportunity to employer;
and employees in any trade or industry or subdivision thereof with respect to which
the conditions referred to in clauses (1) and (2) of subsection (a) prevail, to establish
by mutual agreement, the standards as to the maximum hours of labor, minimum rates
of pay, and such other conditions of employment as may be necessary in such trade
or industry or subdivision thereof to effectuate the policy of this title, and the
standards established in such agreements, when approved by the President, shall have
the same effect as a code of fair competition.

……

(c) Where no such mutual agreement has been approved by the President he may investigate
the labor practices, policies, wages, hours of labor, and conditions of employment
in such trade or industry or subdivision thereof; and upon the basis of such investigations,
and after such hearings as the President finds advisable, he is authorized to prescribe
a limited code of fair competition fixing such maximum hours of labor, minimum rates
of pay, and other conditions of employment in the trade or industry or subdivision
thereof investigated as he finds to be necessary to effectuate the policy of this
title, which shall have the same effect as a code of fair competition approved by
the President under subsection (a) of section 3. The President may differentiate according
to experience and skill of the employees affected and according to the locality of
employment; but no attempt shall be made to introduce any classification according
to the nature of the work involved which might tend to set a maximum as well as a
minimum wage.

(d) As used in this title, the term "person” includes any individual, partnership,
association, trust, or corporation.

[F] Oil Regulation

Sec. 9. (a) The President is further authorized to initiate before the Interstate
Commerce Commission proceedings necessary to prescribe regulations to control the
operations of oil pipe lines and to fix reasonable, compensatory rates for the transportation
of petroleum and its products by pipe lines, and the Interstate Commerce Commission
shall grant preference to the hearings and determination of such cases.

(b) The President is authorized to institute proceedings to divorce from any holding
company any pipe-line company controlled by such holding company which pipe-line company
by unfair practices or by exorbitant rates in the transportation of petroleum or its
products tends to create a monopoly.

(c) The President is authorized to prohibit the transportation in interstate and foreign
commerce of petroleum and the products thereof produced or withdrawn from storage
in excess of the amount permitted to be produced or withdrawn from storage by any
State law or valid regulation or order prescribed thereunder, by any board, commission,
officer, or other duly authorized agency of a State.

……

TITLE II -- PUBLIC WORKS AND CONSTRUCTION PROJECTS

[G] Federal Emergency Administration of Public Works

Sec. 201. (a) To effectuate the purposes of this title, the President is hereby authorized
to create a Federal Emergency Administration of Public Works, all the powers of which
shall be exercised by a Federal Emergency Administrator of Public Works, and to establish
such agencies, to accept and utilize such voluntary and uncompensated services, to
appoint, without regard to the civil service laws, such officers and employees, and
to utilize such Federal officers and employees, and, with the consent of the State,
such State and local officers and employees as he may find necessary, to prescribe
their authorities, duties, responsibilities, and tenure, and, without regard to the
Classification Act of 1923, as amended, to fix the compensation of any officers and
employees so appointed. The President may delegate any of his functions and powers
under this title to such officers, agents, and employees as he may designate or appoint.

(b) The Administrator may, without regard to the civil service laws or the Classification
Act of 1923, as amended, appoint and fix the compensation of such experts and such
other officers and employees as are necessary to carry out the provisions of this
title; and may make such expenditures (including expenditures for personal services
and rent at the seat of government and elsewhere, for law books and books of reference,
and for paper, printing and binding) as are necessary to carry out the provisions
of this title

……

(d) After the expiration of two years after the date of the enactment of this Act,
or sooner if the President shall by proclamation or the Congress shall by joint resolution
declare that the emergency recognized by section 1 has ended, the President shall
not make any further loans or grants or enter upon any new construction under this
title, and any agencies established hereunder shall cease to exist and any of their
remaining functions shall be transferred to such departments of the government as
the President shall designate.

……

Sec. 202. The Administrator, under the direction of the President, shall prepare
a comprehensive program of public works, which shall include among other things the
following:

(a) Construction, repair, and improvement of public highways and park ways, public
buildings, and any publicly owned instrumentalities and facilities; (b) conservation
and development of natural resources, including control, utilization, and purification
of waters, prevention of soil or coastal erosion, development of water power, transmission
of electrical energy, and construction of river and harbor improvements and flood
control and also the construction of any river or drainage improvement required to
perform or satisfy any obligation incurred by the United States through a treaty with
a foreign government heretofore ratified and to restore or develop for the use of
any State or its citizens water taken from or denied to them by performance on the
part of the United States of treaty obligations heretofore assumed: Provided, That no river or harbor improvements shall be carried out unless they shall have
heretofore or hereafter been adopted by the Congress or are recommended by the Chief
of Engineers of the United States Army; (c) any projects of the character heretofore
constructed or carried on either directly by public authority or with public aid to
serve the interests of the general public; (d) construction, reconstruction, alteration,
or repair under public regulation or control of low-cost housing and slum clearance
projects; (e) any project (other than those included in the foregoing classes) of
any character heretofore eligible for loans under subsection (a) of section 201 of
the Emergency Relief and Construction Act of 1932, as amended, and paragraph (3) of
such subsection (a) shall for such purposes be held to include loans for the construction
or completion of hospitals the operation of which is partly financed from public funds,
and of reservoirs and pumping plants and for the construction of dry docks; and if
in the opinion of the President it seems desirable, the construction of naval vessels
within the terms and/or limits established by the London Naval Treaty of 1930 and
of aircraft required therefor and construction of heavier-than-air aircraft and technical
construction for the Army Air Corps and such Army housing projects as the President
may approve, and provision of original equipment for the mechanization or motorization
of such Army tactical units as he may designate: Provided, however, That in the event of an international agreement for the further limitation of armament,
to which the United States is signatory, the President is hereby authorized and empowered
to suspend, in whole or in part, any such naval or military construction or mechanization
and motorization of Army units.

……

Sec. 203. (a) With a view to increasing employment quickly (while reasonably securing
any loans made by the United States) the President is authorized and empowered, through
the Administrator or through such other agencies as he may designate or create, (1)
to construct, finance, or aid in the construction or financing of any public-works
project included in the program prepared pursuant to section 202; (2) upon such terms
as the President shall prescribe, to make grants to States, municipalities, or other
public bodies for the construction, repair, or improvement of any such project, but
no such grant shall be in excess of 30 percentum of the cost of the labor and materials
employed upon such project; (3) to acquire by purchase, or by exercise of the power
of eminent domain, any real or personal property in connection with the construction
of any such project, and to sell any security acquired or any property so constructed
or acquired or to lease any such property with or without the privilege of purchase:
Provided, That all moneys received from any such sale or lease or the repayment of any loan
shall be used to retire obligations issued pursuant to section 209 of this Act, in
addition to any other moneys required to be used for such purpose; (4) to aid in the
financing of such railroad maintenance and equipment as may be approved by the Interstate
Commerce Commission as desirable for the improvement of transportation facilities;
Provided, That in deciding to extend any aid or grant hereunder to any State, county, or municipality
the President may consider whether action is in process or in good faith assured therein
reasonably designed to bring the ordinary current expenditures thereof within the
prudently estimated revenues thereof.

……

(d) The President, in his discretion, and under such terms as he may prescribe, may
extend any of the benefits of this title to any State, county, or municipality notwithstanding
any constitutional or legal restriction or limitation on the right or power of such
State, county, or municipality to borrow money or incur indebtedness.

Sec. 204. (a) For the purpose of providing for emergency construction of public high
ways and related projects, the President is authorized to make grants to the highway
departments of the several States in an amount not less than $400,000,000, to be expended
by such departments in accordance with the provisions of the Federal Highway Act,
approved November 9, 1921, as amended and supplemented.

……

Sec. 205. (a) Not less than $50,000,000 of the amount made available by this Act
shall be allotted for (A) national forest highways, (B) national forest roads, trails,
bridges, and related projects, (C) national park roads and trails in national parks
owned or authorized, (D) roads on Indian reservations, and (E) roads through public
lands, to be expended in the same manner as provided in paragraph (2) of section 301
of the Emergency Relief and Construction Act of 1932, in the case of appropriations
allocated for such purposes, respectively, in such section 301, to remain available
until expended.

……

Sec. 206. All contracts let for construction projects and all loans and grants pursuant
to this title shall contain such provisions as are necessary to insure (1) that no
convict labor shall be employed on any such project (2) that (except in executive,
administrative, and supervisory positions), so far as practicable and feasible, no
individual directly employed on any such project shall be permitted to work more than
thirty hours in any one week; (3) that all employees shall be paid just and reasonable
wages which shall be compensation sufficient to provide, for the hours of labor as
limited, a standard of living in decency and comfort, (4) that in the employment of
labor in connection with any such project, preference shall be given, where they are
qualified, to ex-service men with dependents, and then in the following order: (A)
To citizens of the United States and aliens who have declared their intention of becoming
citizens, who are bona fide residents of the political subdivision and/or county in
which the work is to be performed and (B) to citizens of the United States and aliens
who have declared their intention of becoming citizens, who are bona fide residents
of the State, Territory, or district in which the work is to be performed: Provided, That these preferences shall apply only where such labor is available and qualified
to perform the work to which the employment relates; and (5) that the maximum of human
labor shall be used in lieu of machinery wherever practicable and consistent with
sound economy and public advantage.

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[H] Subsistence Homesteads

Sec. 208. To provide for aiding the redistribution of the overbalance of population
of industrial centers $25,000,000 is hereby made available to the President, to be
used by him through such agencies as he may establish and under such regulations as
he may make for making loans for and otherwise aiding in the purchase of subsistence
homesteads. The moneys collected as repayment of said loans shall constitute a revolving
fund to be administered as directed by the President for the purposes of this section.